(October 25 – 09:25 ET) — Potential mergers in the U.S. financial services industry got a boost late last week when Congressional and Clinton Administration negotiators reached agreement on the proposed Financial Services Act of 1999. The Bill also has broad support from the securities industry.
The Bill must first attain final passage in the House of Representatives and Senate, before heading to President Clinton for his approval. It is expected to clear all three hurdles, finally paving the way for mergers between the banks, brokers and insurers in the U.S.
While the final political wrangling over the bill came down to the issue of community-based banking and lending, one of the most important issues for the Securities Industry Association is the creation of wholesale financial institutions, which will be allowed. The SIA strongly supported this concept, which it says will allow greater access to capital and give firms greater flexibility to better meet customer needs.
-IE Staff
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